Templeton Teach You Contrarian Investing - Notes

Templeton Teach You Contrarian Investing - Notes

1. Bull markets are born in pessimism, grow in doubt, mature in optimism, and die in euphoria.

2. The market is the expected reaction. When everyone is more and more optimistic, the asset price bubble will naturally become larger and larger, but the real value will not change, so when this value cannot keep up with the rise in asset prices. When the speed is high, the market will experience a shattering of expectations, followed by a slump.

3. When the stock price falls, what you see is that the bad news continues to ferment, and the heart is tormented, and what you ignore is that its value attractiveness is increasing.

4. Many masters tell us that as long as the market is not particularly overvalued, you should always stay in the market, so that you can catch the biggest gain, because the gains of stocks are extremely short-lived, often only a percentage of the total time. one.

5. Don't be afraid of volatility. If you are a value investor and you want to buy low-priced stocks, then volatility is your friend. If you are planning to trade trending and buy hot stocks, then volatility is your enemy. The more volatile the trend, the harder it is for you to grasp.

6. When the pessimistic atmosphere is shrouded, the company's value and stock price will be misaligned. What you need to see is to measure whether these pessimistic atmospheres affect the quality of the company.

7. The stock market crash is a particularly good investment opportunity. If you want to catch a stock market crash, it basically means proper returns in the next ten years. Therefore, masters usually like to plunge. This kind of panic will not cause changes in the company's texture at all, but it can push prices down to a very low level.

8. Many people are looking for hot spots, and real investors should look for pessimism and find optimism in pessimism. This is the way to invest.

9. The only way you can keep your mind calm is to keep buying and spreading low costs, so it is wrong to open a position at any time.

10. To put it bluntly, a stock is an asset that can make money continuously. With this earning ability, of course, you will not be afraid of inflation. Even if you are looking forward to inflation, as long as there is inflation, you have the opportunity to make a fortune, but it is different for people who buy bonds. Their yields are written to death. Even if inflation comes, they will not make more money, so Fixed income investors, in fact, have not been able to outperform inflation in the long run of history.